Cinnamon scroll giant demands Melbourne small business change its name

A Melbourne cinnamon scroll maker has been embroiled in a battle-of-the-buns with a large American chain, which is demanding the small family business change its name.

Cinnabon, which has nearly 2000 stores globally including 26 in Australia, threatened further action against Cinnabuns if it did not agree to re-brand within ten days.

Two letters separate the two business names, with Cinnabon claiming Cinnabuns has violated a trade mark it has held since the 1980s.

Cinnabuns owner Mike Ying, who has been in Australia more than a decade after studying baking in France, said he was "very disappointed" to receive a legal letter from Cinnabon, a company he had never heard of.

"I feel like I have to fight against a big name," he told A Current Affair.

"We are just a small family business."

Lawyers for Cinnabon wrote in a cease and desist notice that the name Cinnabuns was "aurally, visually and phonetically similar to Cinnabon".

"There is a real chance that the conduct will, or has the potential to, confuse or deceive consumers, and therefore constitute trade mark infringement."

Macpherson Kelley principal Belinda Sigismundi, who is an expert in intellectual property, said trademarks were fiercely protected by companies.

The lawyer, who is not involved in this case, said trademarks could include brand names, shapes, colours and even scents that held significant value for businesses.

"Christian Louboutin has the red-soled shoe, so he has actually trade marked the red sole of the shoe — nobody can make red-soled shoes in all the countries he's protected that trade mark in," Sigismundi said.

"Toblerone has the shape of the packaging protected."

"If a consumer can be confused, then a trademark infringement is likely to be made out," she told A Current Affair.

Ying said he was now considering his options.

"I was very surprised to get this letter because for me it's not the same."

The Cinnabuns owner has put the call out to his customers to help him find a new business name.

Sigismundi said just because a business name was available on ASIC's business register did not mean it was not trade marked.

"I think the main lesson small businesses should take away is don't get too wedded to a name until you've done your proper due diligence," she said.

Cinnabon, via its lawyers, did not respond to a request for comment.